Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

GOL Segregates Smiles

GOL Linhas Aéreas Inteligentes S.A. (GOL - Free Report) announced its plans to segregate the company’s Smiles Program. The program was first initiated to provide the GOL customers with greater advantage of using the company’s services. The membership of the program entitles the members to accrue mileage points which they can redeem to avail of certain discounts on the flights.

In October 2012, the Smiles program also launched a new platform, Smiles Shopping, through which the members can redeem their mileage points not only to purchase tickets, but also to introduce around 300,000 new products and services from various partners.

Apart from its flying partners such as Delta, Air France, KLM and Qatar, the company also has various shopping partners like Natura, Walmart, Pão de Açúcar, C&A, Editora Abril, Marisa, Chilli Beans, Kinoplex, Compra Fácil, Tok & Stok, AACD, Telha Norte, Games to Go, Bebê Store, Netshoes, Assaí and Polishop.

The program, currently managed by the subsidiary, VRG Linhas Aéreas S.A. ("VRG"), will be conducted by Smiles S.A, a new formed company operated by GOL. At the end of third quarter 2012, the program had approximately 8.9 million members.

As announced during the third quarter 2012 earning release, the company is exploring the possibility of an Initial Public Offering (IPO) of Smiles. However, it has not been predicted as yet the estimated time needed for it. Also, it cannot be assumed that the IPO will eventually be done, as it will depend on factors like the domestic and international capital market conditions as well as other formalities regarding an IPO. Moreover, the company will also have to register Smiles with the Brazilian Securities and Exchange Commission (CVM).

We currently have a Neutral recommendation on GOL. The stock also bears a Zacks #3 (Hold) Rank. The company’s prime competitors Copa Holdings SA (CPA - Free Report) currently has a Zacks #2 (Buy) Rank and LAN Airlines S.A has a Zacks #4 (Sell) Rank.

Resources

Client Support

Follow Us

Zacks Moblie App

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2018 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2017. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.